tirupati l saturday l june 06, 2026 l `9.00 l PAGES 12 l anantapur EDITION Worried anthropic suggests global freeze on ai development The largest AI company by market capialisation warned that the technology is improving so quickly there’s a risk humans would lose control recursive self-improvement a threat pause to enable alignment research Given enough computing power, an AI system could be able to design and develop its own successor, known as “recursive self-improvement”. Self-building AI would be a major technological milestone that would bring benefits in science, healthcare and other areas, Anthropic said, but it “also might increase the risks of humans losing control over AI systems” ■ ■ Anthropic’s post comes after a warning this week from researchers at University of Toronto who showed how AI tools could be used to create a new kind of AI “worm” that adapts its hacking strategy Anthropic researchers said the pause would enable “societal structures and alignment research” to keep up with AI advances | P10 $ 1 trillion could be anthropic’s worth after its forthcoming ipo CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BENGALURU ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELAGAVI ■ BHUBANESWAR ■ SHIVAMOgGA ■ MANGALURU ■ TIRUPATI ■ TIRUCHY ■ TIRUNELVELI ■ SAMBALPUR ■ HUBBALLI ■ DHARMAPURI ■ KOTTAYAM ■ KANNUR ■ VILLUPURAM ■ KOLLAM ■ TADEPALLIGUDEM ■ NAGAPATTINAM ■ THRISSUR ■ KALABURAGI tax axe to heal Annamalai quits BJP, joins race RBI expects 5.1% for 2031 TN polls inflation, keeps Capital gains levy chucked to draw foreign investors D i pa k M o n d a l @ New Delhi After days of speculation, the government on Friday bit the bullet and announced tax relief for foreign investors. It took the ordinance route to grant exemptions on interest income and capital gains earned from investments in government securities by Foreign Institutional Investors (FIIs). However, no relief was extended to investments in equities. Hours later, the Reserve Bank of India (RBI) unveiled a slew of measures aimed at attracting foreign capital. Together, these steps are expected to support the rupee, which has been under pressure in recent months. The ordinance amends the Income-tax Act, 2025 to exempt interest earned on government securities, as well as capital gains arising from their sale, exchange or transfer, from income tax for FIIs, subject to the furnishing of prescribed information to tax authorities. It takes effect retrospectively from April 1, 2026. At present, FIIs or Foreign Portfolio Investors (FPIs) face a 20% withholding tax on interest income earned from Indian debt securities, including government bonds and rupee-denominated bonds. Long-term capital gains on government securities are currently taxed at 12.5%, while short-term capital gains attract a 20% tax. The tax relief is expected to make government bonds attractive for foreign investors at a time when India is seeking deeper integration with global debt markets. Rajesh H Gandhi, Partner, Deloitte India, said the tax exemption would increase returns for FPIs investing in Indian government securities by 15-20% and improve the return differential between Indian sovereign bonds and those of other countries, making India more attractive to global investors. As for the RBI, it expanded the universe of securities eligible under the Fully Accessible Route (FAR) by including all new issuances of 15-year, 30-year and 40year government bonds. In another significant relaxation, it increased investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in listed equity instruments without requiring registration with the Securities and Exchange Board of India. The same facility has now been extended to all Persons Resident Outside India (PROIs) as well. The central bank also unveiled a scheme under which it will bear the full hedging cost on fresh Foreign Currency Non-Resident [FCNR(B)] deposits with maturities of three to five years mobilised up to September 30. Further, the RBI restored the time limit for the realisation of export proceeds to nine months, so as to supporting exporters and improve foreign exchange inflows. Rollicking GDP before war pain Data shows better than expected expansion of the economy in the last financial year. Economic strain expected to be captured in Q1, FY27 rates unchanged RBI’s measures, along with tax benefits provided by the govt this morning, should help attract foreign capital for govt borrowing Sanjay Malhotra, RBI guv Neutral policy stance While retaining the MPC’s “neutral” policy stance, the RBI said future monetary policy decisions would depend on how inflationary pressures evolve Equity markets disappointed There was disappointment in the equity market as the government announced no tax relief for equity investments. Benchmark indices ended in the red Ordinance route The government said the ordinance was necessary as Parliament is not in session and circumstances required immediate action D i pa k M o n d a l @ New Delhi The Reserve Bank of India (RBI) on Friday sprung no surprises, keeping the repo rate unchanged at 5.25%, even as it acknowledged that global economic conditions had deteriorated amid the continuing conflict in West Asia. The central bank lowered its growth forecast for FY27 to 6.6% from 6.9% and raised its inflation projection to 5.1% from 4.6%, citing rising energy prices, supply-chain disruptions and heightened geopolitical uncertainty . Announcing the Monetary Policy Committee’s (MPC) decision, RBI Governor Sanjay Malhotra said the global environment had worsened since the previous policy review, with the ongoing conflict exerting pressure on commodity prices and disrupting supply chains. The RBI now expects India’s GDP growth to moderate to 6.6% during the current financial year - down from 7.7% in FY26 - reflecting the impact of higher input costs and weaker global demand. “The rise in prices of energy and other inputs, coupled with supply disruptions, is likely to weigh on economic activity,” the governor said, adding that prolonged geopolitical uncer tainty could delay supply-chain normalisation and increase costs for businesses. Despite the downward revision, the RBI maintained that the domestic economy remains resilient. Private consumption continues to be supported by discretionary spending, investment activity has retained momentum, and both manufacturing and services sectors continue to expand. Merchandise exports recorded robust growth in April despite elevated freight and insurance costs, while services exports remained strong. The central bank, however, cautioned that downside risks to growth remain significant due to volatile commodity prices, financial market uncertainty, supplychain disruptions and weather-related factors. At the same time, the RBI raised its inflation forecast for FY27 to 5.1% from 4.6%, reflecting the sharp increase in global crude oil and other commodity prices. Malhotra noted that international crude oil prices have averaged around $110 per barrel in recent months, significantly higher than the $85 per barrel assumption used in the previous policy review. The RBI has now revised that assumption to $95 per barrel. Despite mounting inflation concerns, Malhotra refrained from offering any forward guidance on interest rates. He said every MPC meeting evaluates all available options—including a rate hike, a pause, or a rate cut—before arriving at a decision. Nominal GDP or GDP at current prices is estimated at `346.36 lakh crore in 2025-26, against `318.07 lakh crore in 2024-25. Growth rate: 8.9% Even if the growth were to slip below 7% as the RBI forecast suggests... macro stability measures and supply assurances will bring us back to a 7%-plus growth track in FY28 or as soon as external conditions improve — V Anantha Nageswaran, Chief Economic Advisor Naidu announces aqua corridor to strengthen State’s seafood exports U s h a Pe r i @ Visakhapatnam Chief Minister N Chandrababu Naidu has announced plans to develop an aqua corridor connecting Amaravati, Bhimavaram, Kakinada, Visakhapatnam, Krishnapatnam and Nellore, as part of efforts to strengthen Andhra Pradesh’s aquaculture sector and expand seafood exports. Addressing the National Workshop on Seafood Exports held in Visakhapatnam on Friday the Chief Minister said the , State is prepared to create the necessary ecosystem for the growth of aquaculture through improved infrastructure, technology, research, innovation and value addition. The two-day workshop is being organised by the Department of Fisheries under the Ministry of Fisheries, Animal Husbandry and Dairying, in collaboration with the Ministry of Commerce and Industry , with support from the Andhra Pradesh government. Naidu noted the proposed aqua corridor would serve as a hub for research institutions, startups, innovation centres and processing facilities re- Chief Minister Nara Chandrababu Naidu leads a cycle rally in Visakhapatnam to mark World Environment Day | Express quired for the sector’s expansion. The Chief Minister also announced plans to promote the “Andhra Shrimp, India Seafood” brand and called for coordinated efforts to enhance India’s presence in global seafood markets. Describing the Blue Economy as a key driver of future economic growth, the Chief Minister opined that the fisheries sector would play an important role in achieving the goals of Viksit Bharat. He stressed the need to work on the concepts of “Pond to Port”, “Farmer to Global Consumer” and “Blue Economy to Viksit Bharat”. Highlighting Andhra Pradesh’s strengths, Naidu said the State has a coastline of 1,053 kilometres and is supported by ports and airports that provide logistical advantages for seafood exports. “Andhra Pradesh contributes 28% of India’s fish production, and 66% of shrimp production, while accounting for nearly 38% of the country’s seafood export earnings. Annual seafood exports from the State exceed `28,000 crore,” the Chief P4 Minister elaborated.  E x p r e s s N e w s Se r v i c e @ Chennai The BJP on Friday announced the resignation of former Tamil Nadu BJP president K Annamalai — well-known for his aggressive style and fierce anti-Dravidian politics — from its primary membership. The ex-IPS officer also converted ‘We The Leaders’, a youth-based volunteer outfit launched by him in 2020, into a political movement and declared his intention to fight the 2031 Assembly polls in the state. Annamalai also launched the ‘ PJ AbA dul Kalam Centre for Ethics and Politics’ in Coimbatore with the motto “let us be the change to bring change” to train aspiring leaders for public life and electoral politics. His 25-minute online announcement on Friday afternoon gained the attention of more than 55 lakh people across multiple social media platforms. Positioning his movement as a platform to groom a new generation of political leaders, Annamalai said it would eventually evolve into a full-fledged political party after building and training a cadre base. He also said that those trained at the new centre will be fielded in the next local body elections. The movement, he added, would embrace the “politics of the soil” and bring people from all walks of life, particularly technocrats, into politics. It would be rooted in Tamil identity with a national outlook, he said. Projecting himself as a common man’s politician, Annamalai, in an apparent reference to Vijay-led TVK, said TN must move away from cult politics. “We should ensure honest, efficient and capable leadership from the ward level upwards to deliver clean politics and governance.” Annamalai also took aim at dynastic politics, and advocated term limits for elected representatives, arguing that no individual should remain a permanent MLA, MP or a minister. Referring to former president APJ Abdul Kalam as his guiding influence, Annamalai said Kalam embodied the idea of being “a proud Tamil with a national identity”.  We should ensure honest, efficient and capable leadership from the ward level upwards to deliver clean politics and governance. No one should remain a permanent MLA, MP or a minister K Annamalai ‘Nat’l parties didn’t speak TN language’ Annamalai, in his resignation letter to BJP president Nitin Nabin, had pointed out that national parties never spoke the language of TN people which limited their ability to connect with them. In the June 2 letter, Annamalai said the views of the BJP’s leadership do not align with the need for a “growth-oriented and culturallyrooted politics” in Tamil Nadu Woman among 3 Kuki-Zos killed, seven houses torched e x p r e s s ne w s s e r v i c e @ Guwahati In fresh violence in Manipur, three Kuki villagers, including a woman, were killed in an alle g ed militant attack on Friday . Seven houses were torched. The attack was perpetrated at Loibol Khullen village in Kangpokpi district at around 4 am. Kuki organisation Kuki Inpi Manipur (KIM) alleged that the attack was carried out by armed members of National Socialist Council of Nagalim (NSCN-IM) and its “proxy” Zeliangrong United Front (Kamson faction). “This reprehensible act of violence has resulted in the tragic killing of three innocent civilians – Letkhongam Haokip, his wife Tinmary Haokip, and Jangminlal Haokip, while seven houses were reduced to ashes and substantial damage was inflicted upon civilian properties,” KIM said. Stating that such attacks can never be justified under any circumstances, the Kuki organisation called upon the central government to apprehend the per petrators without any delay . First trouble: K’taka minister quits in a huff E x p r e s s N e w s Se r v i c e @ Bengaluru IN a major embarrassment for the new Congress government, Water Resources Minister Ramalinga Reddy resigned Friday, less than 24 hours after portfolios were allocated, upset at not KGH becomes 1st govt hosp in AP to offer free cancer immunotherapy E x p r e s s N e w s Se r v i c e @ Visakhapatnam In a first for government healthcare institutions in Andhra Pradesh, King George Hospital (KGH) in Visakhapatnam has launched a clinical trial, offering free immunotherapy treatment to eligible patients diagnosed with Stage-IV lung cancer. The trial, being conducted by the Department of Medical Oncology will provide ad, vanced immunotherapy along with chemotherapy to patients aged between 18 and 65 years for up to one year. According to hospital authorities, the treatment involves an immunotherapy drug that costs `4 lakh per cycle in the private sector. Under the clinical trial, eligible patients will receive the medication free of charge once every three weeks, with a total of 17 cycles planned over a year. KGH is currently the only government cancer centre in the State where this clinical trial is being conducted. Dr K Shilpa, Head of the Department of Medical Oncology and Principal Investigator of the study will oversee the trial. , According to hospital officials, the programme is aimed at improving access to advanced treatment options for patients P4 with advanced-stage lung cancer.  receiving the Bengaluru Development portfolio he says he was twice promised. Reddy, an eight-time MLA from BTM Layout, said Chief Minister D K Shivakumar had personally assured him the portfolio, which ultimately went to Krishna Byre Gowda. In his resignation letter, Reddy said accepting the allocation went against his conscience, adding he would continue to work as an MLA and Congress worker. Shivakumar acknowledged his promise but said the decision on portfolios was taken by party high command.